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Egypt’s small farms play big role but struggle to survive

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Egyptian smallholders have stepped in to help make up the feared shortfall in the nation's food supply since Russia invaded Ukraine but many of them struggle to break even
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Egyptian smallholders grow nearly half of the country’s crops, a lifeline role increasingly important after grain imports were stalled by war in Ukraine — but they are struggling to survive.

Despite their crucial role providing food for the North African nation’s 103 million people, smallholders are cash-strapped and indebted, frequently selling their harvests at a loss.

“The farmer is dead, trampled,” farmer Zakaria Aboueldahab told AFP, brewing tea on his rented plot of wheat and onions in Qalyubia, 30 kilometres (18 miles) north of Cairo.

“I’m trying to sell my onion harvest but I can’t find a market,” he said, the remnants of his crop scattered across the soil. “I just want to break even. I don’t know how I’m going to pay rent”. 

His onions would sell in Egypt: but financing, marketing and infrastructure hurdles create massive gaps between supply and demand.

According to the United Nations Food and Agriculture Organisation (FAO), small farms are the “primary producers” of food for domestic consumption in Egypt. 

Farmers cultivating less than three feddans (1.2 hectares, three acres ) — an area the size of a football pitch — till 35 percent of arable land.

Yet they produce some 47 percent of Egypt’s field crops, the FAO calculates.

Larger farms focus more on exports -– a dynamic that came to a head when Russia invaded Ukraine.

– ‘Patriotic duty’ –

Egypt, the world’s leading importer of wheat, relied on Russia and Ukraine for 80 percent of its imports, providing the flour for Egypt’s traditional flat bread.

Ordinary Egyptians eat bread at almost every meal, and Egypt’s wheat farmers ramped up production to 40 percent of the country’s needs.

“Without the 40 percent of wheat that we produce domestically,” rural sociologist Saker al-Nour told AFP, the consequences of the war “would be much worse.”

In March, Cairo ordered farmers to grow wheat, calling the “compulsory delivery” orders a “patriotic duty.”

By June, farmers had provided more than 3.5 million tonnes, according to the supply ministry, over half the domestic supply goal to August, and equal to the total amount supplied in 2021.

Compulsory crop deliveries were a pillar of president Gamal Abdel Nasser’s socialist policies in the 1960s, but those policies were dropped amid the structural adjustment programmes of the 1990s.

With them went the former subsidies on seeds, pesticides, and fertilisers which have steadily shrunk over the decades.

“Instantly, when things got tough, it went back to compulsory delivery, but this time without the services that came with it,” Nour said.

To encourage farmers to grow wheat, the government had previously set domestic prices higher than imports.

But the unprecedented surge in global prices undermined that.

– Stronger together? –

“Now I owe money to the pesticide guy, to the fertiliser guy,” Aboueldahab said. “So if someone comes along and bids a low price, what am I supposed to do?”

One solution is for smallholders to join together and harness the power of technology.

Entrepreneur Hussein Abou Bakr launched a start-up finance company called Mozare3, ‘farmer’ in Arabic, which offers farmers financing solutions and agronomy support.

It also helps farmers “become a bloc”, in the absence of effective local cooperatives and sets prices “as a form of protection” against market fluctuations.

Nour warns smallholders have “very limited negotiating power, especially when they don’t have the storage capacity for their harvest”. 

But with illiteracy among smallholders at 32 percent, according to the FAO, offline village associations are necessary.

As climate change bites, Nour warns bottom-up approaches are essential.

These associations could, for example, communicate extreme weather events quickly and directly to farmers whose crops are at risk.

These tools exist, the sociologist said. “We just need to make them available to small farmers.”

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Canada considers extending timeline for oil industry emission targets

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An oil rig is seen in Canada's Saskatchewan province in October 2019
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Canada, the world’s fourth-largest oil producer, is considering pushing back its greenhouse gas reduction timeline for its oil industry, the environment minister told media Saturday.

The government recognizes that “some of the measures that will be needed to achieve those deep emission reductions might require more time than what we have between now and 2030,” observed Canadian Environment Minister Steven Guilbeault in an interview with CBC’s “The House.” 

“There’s a possibility that if the industry needs a bit more time, then we can provide some flexibility while ensuring that Canada still meets its 2030 goals,” Guilbeault said. 

Last year Prime Minister Justin Trudeau’s government announced an enhanced plan to comply with the Paris Climate Agreement, aiming for a 40-45 percent reduction in its greenhouse gas emissions by 2030 from 2005 levels. 

The oil and gas industry, which makes up for more than a quarter of the country’s carbon emissions, is critical to achieving this goal, an interim target on the road to achieving carbon neutrality by 2050. 

According to Guilbeault, Ottawa is willing to “allow the industry a bit more time if they need this time to deploy the necessary infrastructure that they need to reduce emissions.” 

He did not specify how Ottawa planned to meet its 2030 international commitments if the oil and gas sector was allowed to push back its reduction targets. 

Canada has never before met its previous greenhouse gas reduction targets. 

The Pathways Alliance, a coalition of six Canadian oil producers, plans to reduce its CO2 emissions by 22 megatonnes by 2030, compared to a federal government target of 110 megatonnes, out of a total of 191 megatonnes emitted in 2019, according to CBC. 

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Snap to slow hiring after dismal earnings pummel stock price

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Snap said its loss more than doubled in the recently ended quarter despite rising use of Snapchat
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Snapchat’s owner plans to “substantially” slow recruitment after bleak results Thursday wiped 25 percent off the stock price of the tech firm, which is facing difficulties on several fronts.

Snap reported that its loss in the recently ended quarter nearly tripled to $422 million despite revenue increasing 13 percent under conditions “more challenging” than expected.

A hit with young internet users in its early days, ephemeral messaging app Snapchat has remained a small player in the social networking space as competition has grown ever more intense.

“We are not satisfied with the results we are delivering, regardless of the current headwinds,” California-based Snap said in a letter to investors.

The firm pointed to a punishing confluence of increased competition, slowing growth of its revenue, “upended” advertising industry standards and macroeconomic woes.

Snap share price was around $12 in after-hours trading in the wake of the earnings report.

“Competition — whether it’s with TikTok or any of the other very large, sophisticated players in the space — has only intensified,” Snap chief financial officer Derek Andersen said on an earnings call.

“So it’s hard to disentangle the numerous factors here impacting what’s clearly a headwind-driven deceleration in our business,” he added.

The number of people using Snapchat daily grew 18 percent to 347 million from the same quarter a year ago, Snap reported.

Snap last month launched a subscription version of Snapchat as it looks to generate more money from the image-centric, ephemeral messaging app.

– Trouble on multiple fronts –

Snapchat+ is priced at $4 a month and will provide access to exclusive features. It said that these would include priority tech support and early access to experimental features.

The subscription version of the service made its debut in Australia, Britain, Canada, France, Germany, New Zealand, Saudi Arabia, the United Arab Emirates, and the United States, Snap said.

Snap in February reported its first quarterly profit, but two months later warned that it saw the economic outlook as having darkened considerably.

“It’s clear that the challenging economic environment continues to put pressure on Snap’s business,” said Insider Intelligence principal analyst Jasmine Enberg.

“Snap is also still reeling from the impact of Apple’s privacy changes, which have disproportionately impacted performance advertisers, creating a one-two-punch to its entire ad business.”

Apple rocked the digital advertising landscape by tightening privacy controls in the software powering its iPhones, letting users curb the tracking data used to target ads.

Snap is a small player in the online ad market, accounting for less than one percent of the money spent worldwide, which makes it more susceptible to such changes and challenges than internet giants such as Facebook-parent Meta, Eng said.

“It can be difficult to attribute deceleration to any one factor,” Andersen said. “But in order to keep growing, we’ve got to stay focused on the inputs that we control.”

Snap a while back recast itself as a “camera company,” fielding offerings such as picture-taking glasses called Spectacles.

“Long-term the most exciting opportunity is (augmented reality) and we’re investing heavily around the future of AR,” Andersen said.

Meanwhile, the battle for people’s attention online grows increasingly fierce as established titans such as Meta and Google adapt offerings to changing trends and relative newcomers such as TikTok grab the spotlight.

Anderson added that Snap intends to effectively pause hiring and look at reining in other expenses, joining a growing number of tech firms throttling back costs.

“We intend to substantially slow our rate of hiring to effectively pause growth in our headcount, which is a significant portion of our office,” he added.

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Volkswagen to change CEO and style with departure of Diess

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Diess has led Volkswagen's pivot to electric vehicles but ruffled feathers with his divisive style
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Volkswagen unexpectedly announced Friday that its CEO Herbert Diess will step down in a few weeks after four years at the head of the German auto giant as it attempts an ambitious shift towards electric vehicles.

Diess’s will leave the helm from the top of the world’s second-largest automaker “by mutual consent” on September 1, Volkswagen said in a statement.

The outgoing CEO had been in the hot seat at Volkswagen for months amid clashes with workers’ representatives and a nagging troubles at the group’s software division.

The change at the top comes as Volkswagen is aiming to leave behind combustion engines to become the world’s biggest electric car manufacturer by 2025 — a target boosted by Diess himself.

Diess had “played a key role” in the transformation of the group, steered the company through “extremely turbulent waters” and “implemented a fundamentally new strategy”, said Volkswagen supervisory board chairman, Hans Dieter Poetsch.

The reins will be taken by Oliver Blume, the current boss of the Porsche sports cars, part of the Volkswagen family of 12 brands, which also includes the likes of Skoda and Audi.

The switch was decided at a meeting of the group supervisory board on Friday.

“Team spirit, fairness and passion are essential for success,” he said in a statement on Friday.

Blume will stay on as the CEO of Porsche, which is in the midst of planning an entry onto the stock market, potentially as soon as this year.

– Software malfunction –

Diess took over Volkswagen in 2018, tasked with turning the page once and for good on the 2015 “dieselgate” scandal, where Volkswagen tampered with millions of diesel vehicles to dupe emissions tests.

Under Diess, Volkswagen has backed its electric shift with a total of 46 billion euros ($46.8 billion) in planned investments over the next five years.

Latterly, Diess took over responsibility for VW’s tech division Cariad on the board of management.

But the development of a platform to be used in the group’s vehicles has however been mired by “production delays” that have “cost money”, according to German automotive expert Ferdinand Dudenhoeffer.

The software branch had likely “created too many problems and challenges for the VW Group”, he said.

Revitalising the software division would be top of Blume’s in-tray, Dudenhoeffer said, along with the future of Volkswagen’s battery strategy. 

In one of his last acts as CEO, Diess laid the ceremonial cornerstone at the site of the group’s first in-house battery factory alongside German Chancellor Olaf Scholz.

– Divisive style –

The outgoing CEO often ruffled feathers with his divisive style that led to clashes.

An open admirer of Elon Musk, the CEO of American electric vehicles pioneer Tesla, Diess said last year the storied German carmaker would need a “revolution” to take on its US rival.

His suggestion last October that up to 30,000 jobs could be at risk at Volkswagen in Germany if it could not cut costs in its transition to battery-powered models angered powerful workers’ representatives.

In 2019, Diess was made to apologise for making a play on words with a Nazi slogan — “EBIT macht frei” — a ham-fisted attempt to underline the importance of operational profits to the group.

The Volkswagen group as a whole has been in the spotlight of late for its operations in the Chinese province of Xinjiang, where authorities are accused of leading a crackdown against the Muslim minority.

Diess said recently the automaker “should stay” in the region and gave assurances there is “no forced labour” at the factory it operates together with its Chinese partner SAIC.

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